There are several options for the pipeline, including connections to the TAWN
plant, to NGC's regional pipeline system or to Contact Energy's gas-fired power station, about four miles to the north.
In New Zealand, the production processing facilities at TAWN
underwent regularly scheduled maintenance in April 2006, and as a result, production levels were reduced for about fourteen days.
Plans are underway to determine the modifications necessary at the TAWN
processing facilities to process greater amounts of this gas so that it can meet specifications of the natural gas pipelines in the Taranaki region.
The acquisition of the TAWN
assets clearly achieves numerous strategic objectives for us.
New Zealand reserves constitute 21% of the Company's total proved reserves with 15% of total reserves attributable to the Rimu/Kauri area and 6% to the TAWN
Due to the recent weakness in oil and gas prices and the successful closing of the TAWN
acquisition, the Company is adjusting its capital budget and 2002 guidance accordingly.
The Company also anticipates additional exploitation and exploration drilling activity in the TAWN
area, which would target the Tariki Sands and deeper pool tests.
Approximately 80% of the production for the third quarter was delivered from the TAWN
fields, however for the month of September, the Rimu/Kauri area accounted for approximately 28% of the production contrasted against 14% of the production for the month of July.
Including the recently announced acquisition of the TAWN
petroleum mining licenses from Shell New Zealand, SENZ now holds interests in nine permits in New Zealand consisting of four exploration permits and five mining licenses or permits.
Northeast of the TAWN
area in New Zealand, SENZ has commenced the re-entry of the Tuihu-1A exploration well.
Production was down 7% from first quarter 2003 levels primarily as a result of scheduled plant maintenance at both the TAWN
and Rimu processing facilities.
We believe that the excess processing capacity, pipeline infrastructure and access to markets, acquired as part of the TAWN
acquisition, can add significant additional value as we further expand our position in New Zealand.